Update 10/12/16 – Safeguard has received a $418,528 sales-tax exemption and a 15-year property-tax reduction from the Nassau County IDA for a new self-storage conversion in Valley Stream, N.Y. The $10 million project will convert a former car dealership. This is the third tax break Safeguard has received from the IDA and eighth awarded to self-storage operators, according to the source.
The move was criticized in an editorial published by “Newsday,” which said, “Every tax break like this must be made up by the other property owners who haven’t been granted them.” The article noted the self-storage facility will provide two full-time jobs paying an average annual salary of $45,000.
The reasoning behind the allotted abatement was that the self-storage development will “clean up a vacant area,” Kearney told the source.
6/26/14 – Safeguard Self Storage received tax breaks this week from the Nassau County Industrial Development Agency (IDA) in its quest to build a $9.4 million facility in Massapequa, N.Y. The IDA helps businesses relocate, expand and finance new investments nationwide.
Safeguard plans to convert the former Sunrise Health & Racquet club at 6000 Sunrise Highway to self-storage. The property is across from the Westfield Sunrise mall and adjacent to the Long Island Rail Road tracks. It will be Safeguard’s fifth property in Nassau County, and will create two jobs with an average salary of $33,917 per year, according to the source.
The IDA granted the storage operator a $333,141 sales-tax exemption and a property-tax break that freezes the tax rate for five years, followed by a 1.66 percent increase in each of the next five years and a 2 percent increase in the final five years, the source reported. This is the first time Safeguard has received IDA tax breaks, according to company attorney Chris J. Coschignano.
Safeguard is the fourth self-storage business the IDA has assisted, executive director Joseph J. Kearney told the source. He also noted there’s still demand for the service in Nassau County.
Headquartered in Atlanta, Safeguard Self Storage was founded in 1989 and currently operates more than 60 facilities in Florida, Illinois, Louisiana, New Jersey, New York and Pennsylvania. The company is owned and operated by Morgan Stanley’s Prime Property Fund.
The IDA consists of a team of professionals whose mission is to promote the economic welfare and prosperity of Nassau County, according to its website. The organization works with partners to provide additional services from loans to tax credits to workforce training.
- Nassau County Industrial Development Agency: Website
- Newsday: Hilton Garden Inn in Port Washington to Get Tax Breaks
- Newsday: Yet Another Ridiculous Industrial Development Tax Break